What is the cause for certain alt coins to raise drastically?

[chav216]

This may be a bad a question for a new band possible wrong section....but here goes.

Watch the different alt's..... you can tell some are gonna be around and trusted more than others, which means they can be great investment tools. But what causes the different value in the coins to go so high and then fall before you can download, sync, trade, and sell as I've see often?

Is there any recommendations on which app or site to follow trends while still time to benefit from the opportunity.

I hear some say trading alt coins can be very adventagous and some say very risky, but with the small value of each coin and the high amount needed to make a valued trade, it seems a big task and more importantly a major risk of earned crypto. Can someone help in understanding the madness. ?

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[HabBear]

The mechanics of how price is influenced in these coins is rather simple. There's so little volume trading on any given day that if one person floods or demands several times that daily amount you'll see the price pop. And when the price per coin is very small it's easy to buy a huge lot and influence the price.

That's the mechanics of supply and demand.

The reason for the pop in demand is usually someone behind the coin or closely related to the coin trying to generate a buying spree. They buy enough to cause the first pop, others see the movement and may buy into what they think is a legit breakout. In reality these moves keep the price inflated for a day or a few hours so original owners can dup their coins at the higher price to the people that follow them into the buying activity. This is more commonly referred to as a "pump and dump".

[chav216]

The mechanics of how price is influenced in these coins is rather simple. There's so little volume trading on any given day that if one person floods or demands several times that daily amount you'll see the price pop. And when the price per coin is very small it's easy to buy a huge lot and influence the price.

That's the mechanics of supply and demand.

The reason for the pop in demand is usually someone behind the coin or closely related to the coin trying to generate a buying spree. They buy enough to cause the first pop, others see the movement and may buy into what they think is a legit breakout. In reality these moves keep the price inflated for a day or a few hours so original owners can dup their coins at the higher price to the people that follow them into the buying activity. This is more commonly referred to as a "pump and dump".

Excellent information...Which explains why so many alt coins are considered unsafe. They can be gouged by any small group of investors and then dumped while others are thinking it a new opportunity nut has actually already missed the boat. So i guess the real goal is have so many different alt coins that you will eventually catch the increase in voulme and benefit.

Otherwise watch for the Dump...."Pump and Dump", sound a lot like my old relationships....too bad i'm the one getting dumped now SMH

[HabBear]

So i guess the real goal is have so many different alt coins that you will eventually catch the increase in voulme and benefit.

Otherwise watch for the Dump...."Pump and Dump", sound a lot like my old relationships....too bad i'm the one getting dumped now SMH

That is one goal, but how easy would it be to manage? You can't own these coins in The same exchange ( you'd probably have deal with 20+ exchanges), there are 200 some alt currencies. Then you need to monitor each day and night to make sure you're not missing the run up, the pump!

If you look at their charts you'll find that a lot of these coins have one pump in their existence! Btc and Ltc were the same in their earliest days, but most of these alt currencies don't offer any new feature to pull the market away from the existing options. Honestly most are set up for the purpose of the few creators cashing in on the pump, leaving you with the steaming pile of dump!

If i were you i'd focus on the real 5; Bitcoin, Litecoin, Monero, Dash, and Ethereum. Each offers some utility to the cryptocurrency idea.

Love your joke, i know that scenario but we used to call it "dip and skip!"

Glad i could help.

[mk4]

The rise of altcoins prices can be caused by alot of factors. But I think usually it is caused by great marketing and hype. Just looked at what happened to EOS. It rose too much in price within a short time span. People were posting about EOS everywhere.

Anyway, I use TabTrader on android to be updated on altcoin prices.

[BitcoinBallerina]

There are a few main causes for why altcoins rise in price:

First, whenever Bitcoin rises in price, altcoins tend to follow suit. It is just how it is.

Second, the classic "pump and dump". This is when someone buys up a bunch of coins at a low price, fooling people into thinking there is a rise in demand. When these people begin to buy, the original "pumper" selles the coins they just bought for a profit.

Third, hype. Altcoin creators want the demand for their coins to go up. Some spend thousands, or even hundreds of thousands or millions of dollars promoting their coin in hopes that it will eventually take off. This advertising/marketing/promotion is often the cause of rising altcoin prices.

[chav216]

So i guess the real goal is have so many different alt coins that you will eventually catch the increase in voulme and benefit.

Otherwise watch for the Dump...."Pump and Dump", sound a lot like my old relationships....too bad i'm the one getting dumped now SMH

That is one goal, but how easy would it be to manage? You can't own these coins in The same exchange ( you'd probably have deal with 20+ exchanges), there are 200 some alt currencies. Then you need to monitor each day and night to make sure you're not missing the run up, the pump!

If you look at their charts you'll find that a lot of these coins have one pump in their existence! Btc and Ltc were the same in their earliest days, but most of these alt currencies don't offer any new feature to pull the market away from the existing options. Honestly most are set up for the purpose of the few creators cashing in on the pump, leaving you with the steaming pile of dump!

If i were you i'd focus on the real 5; Bitcoin, Litecoin, Monero, Dash, and Ethereum. Each offers some utility to the cryptocurrency idea.

Love your joke, i know that scenario but we used to call it "dip and skip!"

Glad i could help.

That was exactly my next issue after 3 or 4 new alts I now have 3 or 4 exchanges and bounties to monitor. While 3 isnt bad gaining more alts doesnt look like the smart way to go. I could use one site to monitor coin changes but having access to each coin and exchange will soon become too much. I will stick to the main ones here on out...

Why not XRP. I would think Ripple would be thrown in the mix as well....I may be wrong.

[profitgenerator212]

There are pump and dump teams that operate on major exchanges.

Mostly Chinese from what I have seen, they love to play around with altcoins so if your coin jumps 400% in 1 hour, it's probably a good idea to not buy into that since it's just a manipulation phase.

I'd just keep a buy order for an alrcoin when it goes south and then keep a sell order at high levels in case somebody pumps it up to the stars.

[EastBirth]

The people that know the answers to these questions will not answer since that would be how they are making good profit.
If you were making good profit and knew of some causes an altcoin could raise in value wouldn't you want to keep it to yourself ?

[dothebeats]

The amount of hype that surrounds a certain coin is a big factor in having its price rise. Aside from that, if the devs are  very much open to any criticisms about their coin, that will build up trust from the potential investors and in turn would have positive market reaction.

And some of these alts are pump and dump scams too, just so you know.

That is one goal, but how easy would it be to manage? You can't own these coins in The same exchange ( you'd probably have deal with 20+ exchanges), there are 200 some alt currencies. Then you need to monitor each day and night to make sure you're not missing the run up, the pump!

Forgive my ignorance ... but why we can't have multiple coins in the same exchanger?

You can have them in one cryptocurrency exchange. These exchanges support almost all listed coins and you can deposit it any time you want to.

[sheld0n]

Mostly the reason is a new software milestone or new partnerships with realworld companies and enterprises. Sometimes also because of pump and dump announcements but this counts not for the top altcoin projects rather for small projects with ranking 50 and higher on coinmarketcap.
For instance, the Ethereum surge was drove by the many ICOs which used the platform to issue tokens.

[Goosebump]

Many of the random jumps you see in altcoins can be due to "pumping and dumping". Groups of people or in some cases one person buys up a large portion of a certain coin, they then tell their following to do the same, inflating the price drastically. As the price rises, the "pumper" sells his stake in the coin ( usually quite significant ) and then the price begins to drop off after the initial "dump". This is not always the case but it happens pretty frequently.

[Okiboy]

Has anyone had any experience following these pump and dump groups?  Are they just pure scams?

[CoinOp]

The coins that people are holding onto will go up in price, when someone is selling out they will go down in price.  For it to go up there has to be a buying interest, someone trying to stockpile or buy up the coin for whatever reason.

[btcdevil]

Their is no app which can tell which coin will go up or get dumped, it is upto you to have full information of the coins projects and information of their performance. Mostly the new altcoin listed will get first dumped so in that time you have to take the dump oppurtunity to buy in dip and wait for the pump when the project gives information on their project details which leads the coin price to get pump and that time just dump your coins and take profit.

The most important thing you have to know is NEVER LOVE A COIN AND HOLD IT, as soon as you see profit just dump and move to another coin. But their are some coins whose project are real and in longterm they give good profit.

[darkangel11]

The coins that people are holding onto will go up in price, when someone is selling out they will go down in price.  For it to go up there has to be a buying interest, someone trying to stockpile or buy up the coin for whatever reason.

Actually the majority has to keep buying or selling for the price to move. If "someone" decides to sell their stash it won't impact the price, unless he's in possession of a significant stash, like 1% of all coins in circulation.

To answer the OP's question, coins usually go up when the community finds them promising. For instance there were coins that didn't offer any game changing features but just caught an eye of the public, like dogecoin. It became trendy and went up in price.
An easy way to lower the price of a coin is to offer giveaways or so called airdrops to the public. This increases the number of coins in circulation and the number of people willing to dump something that they got for free.

[Rosam]

Many altcoins will follow that pattern, because tokens are not something you could compare to a shares or currencies. The value of a lot of them (maybe the majority) is not backed up by anything, neither assets (patents, capital and so on), a political body a community or real world use. It's not true for all of them (bitcoin or XMR or Ether or even Waves have users who transmit value, or create tokens with them, Pay is in some ways similar to a share, with a company using it to develop and paying dividends (if they happen to be successful), so before you invest in any token you have to have a look at what it is, what it is used for, by whom, and that will give you an idea of which tokens will probably keep some value and which will just rise and collapse (sometimes several times, sometimes just once) because nobody has any use for them except a few holders looking for quick bucks.

[counterplay]

Has anyone had any experience following these pump and dump groups?  Are they just pure scams?

When the intention of the group is to give other people false buying signals you can already see that these guys shouldn't be trusted a lot.
And the problem is always that the first buyers have a huge advantage, because the price is still low.
So it could be that you expose yourself to a lot of risk, because you hop on the train too late.

[Velkro]

This may be a bad a question for a new band possible wrong section....but here goes.

You can write long essay's about it but answer is simple... pure speculation.
No alt add real value to bitcoin technology.
Its a pump and dump always in either way to earn money on less experienced or with less knowledge.

[fossilized]

Speculation and manipulation, especially for small volume exchanges. Due to low levels of liquidity, any increase in demand will cause a high price rise. U can take a look at the order book e.g. gravychain app to see the amount of liquidity available in terms of demand and supply.

Recommendations? I would stay away from low liquidity coins. The pump and dump just isn't worth it.